Snapchat Q3 2018 earnings report a narrow loss than forecast as its user base falls by 1 percent but shares are actually improving…
Snapchat daily active user count fell again in Q3 of 2018. But, user count is up by 5 percent in a year-over-year comparison. It’s also recovering from a 1.5 percent negative growth rate posted in the second quarter.
Now, the company claims 186 million DAUs or daily active users. However, its shares rose by about 8 percent. (It did so with higher revenue per user.)
Snapchat Q3 2018 Earnings Show Narrow Loss but Improvement in Shares
The numbers tell more. Last quarter, Snap suffered a decline in its daily active users in both North America and Europe. The latter was partly due to the enactment of the GDPR or General Data Protection Regulation.
In his prepared remarks, CEO Evan Spiegel admitted:
“While we have incredible reach among our core demographic of 13- to 34-year-olds in the US and Europe, there are billions of people worldwide who do not yet use Snapchat.”
Snap currently plans to continue an expansion of its third-party advertising offerings. In conjunction, it will widen its content partnerships. Combined, the company believes these two measures, along with other tweaks, will result in profitability in 2019.